Supports for landlords
Boost your rental property's value with a home energy upgrade. Leverage tax incentives and grants for cost-effective improvements.
Newer rental properties are built to use very little energy but older rentals often use a lot more. As a landlord, you might think upgrading isn't worth it if tenants are the ones paying the energy bills. Making your property more efficient is always the smart choice, and thanks to a range of government supports, it’s now easier than ever.
Why upgrade your rental property?
- Upgrading your property's energy efficiency has many long-term benefits. Not only will it raise your property's value but it could also lower your mortgage rates.
- Being an attentive landlord is crucial for maintaining positive, long-term tenancies. By investing in energy improvements, you will provide your tenants with a warmer and healthier home. With a cosier living space and lower energy costs, tenants will be encouraged to stay longer.
- Many energy upgrades can be done without much disruption and while tenants stay in the home.
- Private and commercial landlords can access a range of financial supports for energy upgrades, including SEAI grants, tax incentives, low-cost loans and favourable mortgage rates.
Supports for landlords
| Private landlords | Commercial landlords | |
|---|---|---|
| SEAI grants | ||
| National Home Energy Upgrade Scheme | ✔ | |
| Better Energy Homes Scheme | ✔ | ✔ |
| Solar PV Scheme | ✔ | ✔ |
| Community Energy Grant | ✔ | ✔ |
| Tax incentive | ||
| Deduction for retrofitting expenditure for Case V rental income | ✔ | ✔ |
| Low-cost loans | ||
| SBCI Home Energy Upgrade Loan Scheme | ✔ | |
| SBCI Growth and Sustainability Loan Scheme | ✔ | |
| Green mortgages | ✔ | ✔ |
SEAI grants
SEAI provides various grants for landlords to help fund energy efficiency improvements. Learn more about each option.
Grants on the National Home Energy Upgrade Scheme:
- are suitable for private landlords
- are fully managed by a registered One Stop Shop
- allow multiple upgrades at once
- require a minimum BER B2 on completion
- are deducted from the cost of works upfront
Better Energy Home and Solar PV Grants:
- are suitable for private and commercial landlords
- offer between €700 and €8,000 for energy upgrades including attic insulation, wall insulation, heat pumps, heating controls and solar PV
- require you, the landlord, as homeowner to apply for the grant directly
- need a contractor to be registered with SEAI
- are available for residential properties built and occupied before 2011 for insulation and heating controls, and before 2021 for heat pumps and renewable systems
- Please contact [email protected] for the relevant Authorisation forms before applying for a Better Energy Homes grant as a commercial landlord
An SEAI Community Grant:
- are suitable for private and commercial landlords
- is designed for private and commercial landlords as part of community energy upgrade projects
- enables commercial landlords to get grant funding that covers up to 30% of the cost for eligible projects
- includes eligibility for Multi-Unit Developments (MUDs) either partially or fully owned by REITs or other commercial landlords to apply for funding towards eligible energy saving measures
- requires working with a project coordinator to apply
Landlords applying for SEAI grants are subject to either the De Minimis regulation or General Block Exemption Regulation (GBER). These are subject to the terms and conditions of the applicable SEAI grant scheme under which the application is being made.
Tax incentive
A tax incentive is available to encourage small-scale landlords to undertake retrofitting works while the tenant stays in the property. Works must be carried out between 1 January 2023 and 31 December 2025.
Qualifying expenses
Only costs covered by an approved SEAI retrofitting grant can be deducted.
Deduction Limit
Landlords can claim a tax deduction of up to €10,000 per property. This is applicable to a maximum of two rental properties.
Property requirements
The property must be located in Ireland.
It should be rented to a tenant during the retrofitting works and the tenancy must be registered with the Residential Tenancies Board (RTB).
Landlord obligations
The landlord must be tax compliant and possess a valid Tax Clearance Certificate.
The property must remain as a rental property for at least two years after the retrofitting works are completed.
Claim process
If you’re a self-assessed landlord, you can claim relief as part of your annual Income Tax Return, via your online Revenue account.
If you’re a PAYE Landlord, you can claim relief when filing your annual tax return.
Low cost loans
The Home Energy Upgrade Loan Scheme (administered by the Strategic Banking Corporation of Ireland - SBCI) provides low-cost Government-backed loans to private landlords to improve the energy efficiency of up to three properties.
The loans must be used to carry out home energy upgrade works that are also grant-aided through SEAI.
- Loan amounts: €5,000 to €75,000 per property (max €225,000 across 3 properties)
- Loan terms: 1 to 10 years
- Interest rates: Starting from as low as 3%, with interest deductible in computing Case V rental income
The SBCI Growth and Sustainability Loan Scheme provides long-term, low-cost finance to commercial landlords for climate action and environmental sustainability investments.
Green mortgages
Many banks now offer ‘green mortgages’ for rental properties with a BER of B3 or better. The savings from a green interest rate are significant. According to 2023 research from the Central Bank of Ireland, these mortgages typically see a 0.3% interest rate discount. Over a mortgage lifetime, these discounted rates could save you thousands.
Several Irish banks offer favourable mortgage rates for energy-efficient homes. It’s worth checking their websites for more information.
Several Irish mortgage lenders offer favourable rates for energy-efficient homes. It’s worth checking their websites for more information.
The benefits of a green mortgage include:
- Discounted rates for properties with a BER B or better
- cashback incentives for customers switching their mortgage
- access for new and existing customers
- discount on current fixed rates